Public Auction Bidding: The Ultimate Guide 2025
What you will discover in this article
- The precise legal definition and legal framework of overbidding
- The 5 essential steps to successfully outbid others
- How to avoid the 3 most common pitfalls
- All deadlines and costs to be expected (downloadable checklist)
- Expert advice to maximize your chances of success
Seize a second chance to acquire real estate
The auction public represents a real estate acquisition opportunity that is often overlooked by the general public. Among its mechanisms, the overbidding offers a valuable second chance to potential buyers who were unable to win the initial auction.
This comprehensive guide provides you with all the essential information you need to understand and use this procedure effectively, whether you are an individual or a professional.
What is overbidding? Legal definition and foundations
Precise legal definition
The bidding war is a procedure legal allowing any person to make a higher offer after that an award has been made. It is precisely regulated by theArticles R322-50 to R322-55 of the Code of Civil Enforcement Procedures (CPCE).
Article R322-50 of the CPCE clearly states:
“Anyone may make a higher bid of at least one tenth of the main sale price.”
The objectives pursued by the legislator
The bidding mechanism meets two major objectives:
- Maximize the selling price of the seized property, in the interest of the debtor and the creditors
- Offer a new opportunity to persons unable to attend the initial hearing
3 situations where overbidding becomes your ally
- 📅 Unable to attend the initial hearing – Were you unavailable on the day? The overbid gives you extra time
- 💰 Insufficient bidding mandate – Did your lawyer have too limited a budget? Get back in the race with a higher offer
- 🔍 Late discovery of an interesting property – Have you identified the property after the sale? Bidding up is your only solution
The 5 essential steps to successfully outbid others
Step 1: Check your eligibility to outbid
Who can outbid? Article R322-50 of the CPCE is clear : any legally capable person may make a higher bid, even without having participated in the initial auction.
Legal prerequisites:
- Legal capacity to acquire real estate
- Absence of professional prohibition (certain legal assistants)
- Obligation to use a lawyer registered with the bar of the relevant judicial court
Step 2: Strictly respect the 10-day deadline
⚠️ PLEASE NOTE: Failure to comply with this deadline will render your bid inadmissible, with no possibility of regularization!
Article R322-51 of the CPCE specifies:
"The overbid is formed under the constitution of a lawyer registered with the bar of the judicial court before which the sale is pursued. It is denounced by act bailiff within ten days of the award.
Practical calculation of the delay:
- Day 1: Day after the auction
- If the last day is a Saturday, Sunday or public holiday: extension until the next working day
Case law is strict regarding compliance with this deadline: "The ten-day deadline for submitting an overbid is a fixed deadline, which is not subject to interruption or suspension."
Step 3: Complete the mandatory formalities
The bidding procedure requires several specific formalities:
- Declaration of overbidding – Lawyer’s document filed with the registry of the enforcement judge containing:
- Your full identity
- The references of the award
- The amount of the overbid (initial price + minimum 10%)
- Your commitment to acquire in the absence of higher bids
- Proof of solvency – Generally a bank check covering the amount of the overbid (10% minimum of the auction price)
- Denunciation – By bailiff's act to the lawyer of the initial successful bidder under the conditions provided for by article R322-52 of the CPCE
Step 4: Prepare complete financing
The legal minimum amount
Article R322-50 of the CPCE requires an overbid of “at least one tenth of the main sale price”.
Numerical example:
- Initial auction price: €200,000
- Minimum bid: €220,000 (initial price + financing of this difference of €20,000)
Additional costs to anticipate
| Type of fees | Estimate | Comment |
|---|---|---|
| Bailiff's fees (denunciation) | 150-350 € | Mandatory |
| New legal advertisements | 800-1500 € | At the expense of the higher bidder |
| Registry fees | 100-200 € | For registration and re-hearing |
| Attorney fees | 1500-3000 € | Variables depending on complexity |
| Usual auction costs | 10-15% of the price | In the event of a final award |
Step 5: Participate in the bidding hearing
The bidding hearing constitutes the culmination of the procedure, with these specific characteristics:
- Auction Participants : Only the overbidder and the initial successful bidder
- Possible outcome 1 : Award to the higher bidder (if the initial successful bidder does not outbid)
- Possible outcome 2 : New auction between the two parties
- Definitive character : Article R322-55 of the CPCE clearly states: “No higher bid may be received on the second auction”
The 3 traps to absolutely avoid
Trap #1: Underestimating the irrevocability of the overbidding
The consistent case law of the Court of Cassation is clear:
"The author of an overbid cannot retract and the nullity of the overbid can only be requested by the successful bidder."
Consequences of a failure:
- Crazy bidding procedure against you (articles R322-67 et seq. of the CPCE)
- Financial liability for the price difference in the event of resale at a lower price
- Payment of additional costs incurred
Trap #2: Neglecting a prior assessment of the property
Before bidding too high, a thorough analysis is necessary:
- Actual condition of the property (additional visits if possible)
- Legal situation (occupations, easements, technical diagnoses)
- Refurbishment costs possibly necessary
- Market value compared to the increased auction price
Trap No. 3: Acting without specialized legal support
The technical complexity of the procedure fully justifies the use of a auction lawyer public. His mastery of procedural subtleties can make all the difference.
Important special cases to know about
The overbidding in the event of a sale by auction
Overbidding is also possible in the context of sales by auction (judicial division), as confirmed by article 1279 of the Code of Civil Procedure:
“Articles R. 322-39 to R. 322-63 of the Code of Civil Enforcement Procedures are applicable to the auction insofar as they are compatible with the provisions of this section.”
Bidding wars for occupied property
The occupation status of the property has a major impact on its value. The Court of Cassation ruled that "the successful bidder is required to respect the current lease of which he was aware" (Cass. 3rd civ., December 15, 2016, no. 15-24.430). Analyze this situation carefully before bidding.
The bidding war and the urban right of pre-emption
Case law has specified that "the urban right of pre-emption is exercised after the auction hearing on higher bid" (Cass. 3rd civ., September 26, 2012, n° 11-18.430), which can complicate the final acquisition of the property.
FAQ – Questions you may have about overbidding
Can I bid higher if I didn't participate in the initial auction?
Absolutely. Article R322-50 of the CPCE does not require any prior participation in the initial auctions.
How to finance an acquisition by bidding war?
Traditional bank financing remains possible but requires clear information from your banking institution. Expert advice: Start the financing process as soon as you intend to outbid to save valuable time.
Is overbidding possible in all types of court sales?
The overbidding applies to real estate seizures and auctions (sales on judicial division). Certain specific judicial sales may be subject to specific rules.
What happens if the property is occupied?
The occupancy situation (current lease, occupant without title) is transferred to the purchaser. Crucial point of attention: Carefully assess the financial impact and possible eviction proceedings before bidding higher.
Can I visit the property before bidding?
The terms and conditions of sale may provide for additional viewings. If not, request this opportunity from the prosecuting attorney or the enforcement judge.
Conclusion: An opportunity to be seized methodically
The bidding war represents a valuable opportunity for real estate acquisition, offering a second chance to disappointed or late bidders. Its strict legal framework, defined by Articles R322-50 to R322-55 of the CPCE (French Civil Code), guarantees the security of the procedure while imposing rigorous constraints.
To maximize your chances of success:
- Consult a specialist lawyer as soon as possible
- Accurately assess the real value of the property
- Prepare your financing by anticipating all costs
- Strictly respect deadlines and formalities
- Prepare for the bidding war with a clear strategy
By following these tips from an auction lawyer and anticipating potential pitfalls, you will transform the bidding process into a real estate acquisition lever.
Download our checkup if you want to outbid.
This article was written by Maître Zakine, a lawyer specializing in real estate law and public auction procedures. The information provided constitutes general information and is not a substitute for personalized legal advice.